Google’s attempt to acquire Israeli cybersecurity startup Wiz for $23 billion has come to an end, a move that could significantly affect the tech landscape, particularly for Microsoft. Wiz’s CEO, Assaf Rappaport, announced the tough decision to reject Google’s offer in favor of pursuing a goal of achieving $1 billion in annual revenue and preparing for an IPO.
This acquisition would have enhanced Google’s cybersecurity offerings, especially following a major outage linked to CrowdStrike, which impacted the tech industry at the end of last week. According to Wedbush analyst Dan Ives, concerns among investors and ongoing antitrust issues led to the deal’s collapse. Google has faced heightened antitrust scrutiny over the past few years, culminating in its recent trial concerning two major cases brought by the Department of Justice.
Ives noted that the failure of the acquisition could have broader implications for the cybersecurity sector. He anticipates that Google will continue to invest in expanding its cybersecurity capabilities despite the setback with Wiz. Likewise, Microsoft is expected to focus on strengthening its cybersecurity platform in the upcoming 12 to 18 months.
Microsoft recently faced scrutiny due to a significant global IT outage caused by a faulty update of CrowdStrike software, which prompted widespread disruptions across businesses and government operations. While Ives maintains that CrowdStrike sets a high standard in cybersecurity, the incident highlights the necessity for Microsoft to enhance its cybersecurity offerings, particularly following Google’s unsuccessful acquisition attempt.